Microsys Corp is located in Seattle, Washington. The company has developed the Websurfer, a low-cost high-speed...

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Microsys Corp is located in Seattle, Washington. The company has developed the Websurfer, a low-cost high-speed wireless email and web-surfing appliance. This product is manufactured at two plants, located in Atlanta, and Seattle from parts sourced from domestic and international suppliers. After production, Websurfer are shipped to three of its regional distribution centers (RDC) located in San Jose and Houston to serve the USA market. Microsys sells the Websurfer mainly through retail channels. Its major customers selling the Websurfer are - GameStop, Best Buy and STEAM. According to contractual agreement, Microsys makes weekly shipments to the main warehouses (W) of these three retailers. The company uses its own fleet to supply the RDCs on a regular basis using TL shipping with an average cost per box with 10 units given in the table below: Plant Atlanta Seattle Shipping Cost ($/box) to RDC San Jose $3 $1.5 Houston $2.5 $3.5 RDC / Warehouse → San Bernardino San Jose Houston Customer demand (boxes of 10 units) Current distribution design calls for shipments from the RDCs to main warehouses specified by the customers. The customer is responsible for the pickup at the main warehouses and shipping to their retail stores. The company uses LTL shipments (via 3PL contractor) from RDC's to customers' warehouses. Shipping costs, and the weekly demand for boxes of 10 units are given in the table below: $8.5 $2.5 300 Memphis $4.5 $4 Capacity (units/week) 600 10500 8000 Chicago $6.5 $6.5 500 Orlando $7 $7.5 350 Assist Microsys with the design of this service network a. Draw a network diagram representation for this problem. b. Develop a production and distribution plan in Excel for Microsys Corp. that will minimize its service cost. c. Illustrate the final configuration of the service network d. Provide a transportation analytics report for this proposal. Break down distribution costs. e. f. If Memphis needs 100 more boxes, which RDC should supply? At what additional cost? Microsys is studying the possibility of supplying warehouses directly from plants using a dropship model. This initial negotiation with a carrier would allow a regular supply from Atlanta to Orlando for an estimated cost of $8.5 per box. What would change in the initial configuration? If the carrier increases cost by $1, would this option still make business sense? g. If the dropship model at $8.5 per box from Atlanta to Orlando is limited to no more than 150 boxes per week due to carrier capacity, how would that change the dropship model developed in f)? Microsys Corp is located in Seattle, Washington. The company has developed the Websurfer, a low-cost high-speed wireless email and web-surfing appliance. This product is manufactured at two plants, located in Atlanta, and Seattle from parts sourced from domestic and international suppliers. After production, Websurfer are shipped to three of its regional distribution centers (RDC) located in San Jose and Houston to serve the USA market. Microsys sells the Websurfer mainly through retail channels. Its major customers selling the Websurfer are - GameStop, Best Buy and STEAM. According to contractual agreement, Microsys makes weekly shipments to the main warehouses (W) of these three retailers. The company uses its own fleet to supply the RDCs on a regular basis using TL shipping with an average cost per box with 10 units given in the table below: Plant Atlanta Seattle Shipping Cost ($/box) to RDC San Jose $3 $1.5 Houston $2.5 $3.5 RDC / Warehouse → San Bernardino San Jose Houston Customer demand (boxes of 10 units) Current distribution design calls for shipments from the RDCs to main warehouses specified by the customers. The customer is responsible for the pickup at the main warehouses and shipping to their retail stores. The company uses LTL shipments (via 3PL contractor) from RDC's to customers' warehouses. Shipping costs, and the weekly demand for boxes of 10 units are given in the table below: $8.5 $2.5 300 Memphis $4.5 $4 Capacity (units/week) 600 10500 8000 Chicago $6.5 $6.5 500 Orlando $7 $7.5 350 Assist Microsys with the design of this service network a. Draw a network diagram representation for this problem. b. Develop a production and distribution plan in Excel for Microsys Corp. that will minimize its service cost. c. Illustrate the final configuration of the service network d. Provide a transportation analytics report for this proposal. Break down distribution costs. e. f. If Memphis needs 100 more boxes, which RDC should supply? At what additional cost? Microsys is studying the possibility of supplying warehouses directly from plants using a dropship model. This initial negotiation with a carrier would allow a regular supply from Atlanta to Orlando for an estimated cost of $8.5 per box. What would change in the initial configuration? If the carrier increases cost by $1, would this option still make business sense? g. If the dropship model at $8.5 per box from Atlanta to Orlando is limited to no more than 150 boxes per week due to carrier capacity, how would that change the dropship model developed in f)?

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Lets break down this supply chain network design problem for Microsys Corp stepbystep a Network Diagram Representation A network diagram for this problem would include two plants San Jose and Atlanta ... View the full answer